Statkraft to build hydropower plants in Albania

17.06.2013 15:14 | stock exchange information

(Oslo, June 17, 2013) Statkraft has decided to start the construction of the Devoll hydropower project in Albania. Initially, it's decided to build the two hydropower plants Banjë and Moglicë with a combined capacity of 243 MW and an annual production of about 700 GWh.

In total, the Devoll project consists of three hydropower plants in the valley of Devoll, with an installed capacity of 278 MW. On average the power plants will produce about 800 GWh annually, increasing the Albanian electricity production by almost 20 per cent. The investment decision for the third plant will be considered when the first two plants are completed.

The power plants are located on the Devoll river, about 70 km southeast of the capital Tirana. They will utilise a head of 555 meters in the Devoll river, between 650 and 95 meters above sea level. The investment frame for the two first plants is estimated to EUR 535 million. The tendering process for the main contracts is in its final stage and main construction works are planned to start in October. The plants are expected to be completed in 2016 and 2018, respectively.

The project company Devoll Hydropower Sh.A. used to be a 50/50 joint venture between Statkraft and the Austrian energy company EVN. Earlier this year, Statkraft acquired EVN's 50 per cent share and is now 100 per cent owner of the company and the construction project. The change in ownership is approved by Albanian authorities. The concession agreement gives Devoll Hydropower the right to build, own and operate the power plants until they are transferred back to Albanian authorities at the end of the concession period.

- The Devoll project is an important part of Statkraft's investments in international hydropower, based on our hydropower expertise. This construction project secures both renewable energy and development in Albania, and underpins our position as Europe's largest producer of renewable energy, says Øistein Andresen, Executive Vice President International Hydropower in Statkraft.

Statkraft is Europe's largest generator of renewable energy and is the leading power company in Norway. The company owns, produces and develops hydropower, wind power, gas-fired power and district heating. Statkraft is a major player in European power trading and has 3,600 employees in more than 20 countries.